Product Lifecycle Management (PLM) Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The Product Lifecycle Management (PLM) Software Market is expected to register a CAGR of 6.92% during the forecast period of 2022 - 2027. The demand for robust data analytics software platforms in the industry is increasing. These trends have been augmented by the increasing adoption of IoT across the manufacturing industry. PTC's Windchill is an instance of the PLM software embedded with analytics for discrete manufacturers looking for IoT capabilities. This software can boost the PLM solution to sprint with flexibility.

• Digitalization is transforming products from physical goods and tangible services into digital twins, which is an exact replica of the physical product. Industry 4.0 is an important focus aiming at increasing competitiveness by targeting the reduction of production costs while improving product quality and production scalability by utilizing the digitalization of products. SAP is exploring digital supply chain scenarios where different suppliers submit offers directly to a blockchain platform to improve effectiveness across their business networks.
• In addition to this, PLM helps improve approval times and reduce delays by accelerating product introduction to the market, in turn saving costs for adopters. For example, NEXTracker, a technology development company for solar energy, which develops solar trackers, energy storage solutions, and advanced control software, has recently doubled its global manufacturing capacity to 300 megawatts per week. With it, the company adopted Arena's PLM, which helped the company cut approval and review times by nearly 60%, eliminated time-zone delays, and accelerated product introductions by 25%. Such benefits are further augmenting the demand for PLM in the market.
• The increased adoption of Industrial IoT (IIoT) in the production process is aiding the market demand for software applications, and IIoT adoption is expected to skyrocket over the forecast period. For instance, according to GSMA Intelligence, the number of IIoT-connected objects is expected to reach 13.7 billion by 2025.
• The primary reason behind the adoption of such technologies and digitization in industries is innovating products, maximizing profits, and reducing cost and time. PLM has not only proven to improve efficiency but also fuel product innovation. For instance, according to Autodesk, companies with PLM spend 7% less time on nonproductive data management tasks and reduce product development costs by an average of 16%.
• For example, Siemens' PLM software PROCIM'sIM's CAD solutions enabled Spezialfahrzeugbau Tunger, a designer and developer of promotional vehicles, to deliver quality and unique vehicles on schedule and enabled over 14 employee firms to meet the demands of high-profile customers. Such developments are expected to drive the demand even further, and owing to such increasing adoptions, the automotive industry is expected to hold a prominent share of the market.
• Moreover, the software sees major components, such as Multi-CAD solution, Product Data Management (PDM), and Digital Manufacturing, have become vital requirements of product manufacturer's enterprise processes, such as planning and design. The benefits offered by PLM outweigh the cost and time involved in the implementation of the solution.
• According to Beyond PLM, about 70% of the average products across several industries comprise parts and assemblies purchased from other companies. Managing the sourcing of parts, assembly, and distribution during the pandemic has witnessed several challenges due to the disruption of the supply chain and a limited number of employees working across the industries. This has created a digital shift even across medium-sized companies, which has boosted the PLM software market globally.

Scope of the Report

The Product Lifecycle Management (PLM) software market is witnessing growth, as PLM helps in managing the lifecycle of complex products. The Product Lifecycle Management (PLM) Software Market is segmented by Deployment Type (On-premise, Cloud, Professional Services), By End-User Industry (Electronics, Industrial Equipment, High-tech, Aerospace and Defense, Automotive, Architecture, Engineering, and Construction (AEC)), and by Geography.

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Key Market Trends

Increasing Production of Autonomous Vehicles to Drive the Market Growth

• Due to future autonomous vehicle penetration, the developers working on autonomous vehicles have to face various and increasingly complex challenges and, consequently, need to reevaluate their current processes and toolsets.
• Fully-functional autonomous driving systems require some of the most sophisticated software implementations that the carmakers have ever faced for combining a variety of data feeds (e.g., information from sensors, traffic data from the cloud, data coming from other vehicles or infrastructure) and tying it all into the vehicle's electronic and mechanical components to create a network of onboard systems that all work together reliably without user input or correction.
• The integrated ALM (Application Lifecycle Management) and product development platforms, such as codeBeamer ALM, will be instrumental in modernizing development processes for tackling the challenges introduced by the increasing product complexity and the growing reliance of products on sophisticated software applications in the autonomous vehicle sector.
• The increasing use of digital manufacturing and the rising integration of IoT in producing autonomous cars is one of the key trends that is expected to drive the PLM software market in the automotive sector during the forecast period. Tesla has integrated ENOVIA (cPDM software) and CATIA (CAD software) with DELMIA to simulate the manufacturing facility and process in the manufacturing of its model.
• Siemens PLM Software offers a full set of autonomous vehicle solutions for all key technical domains, from chip design to full vehicle validation. NX is one of the company's most potent CAD tools, helping clients run their product designing activities on the software.

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